{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"cash-on-cash-return"},"result":{"entity_type":"calculator","id":"cash-on-cash-return","calculator_id":"cash-on-cash-return","canonical_url":"https://tttkmbb.com/investing/cash-on-cash-return","name":"Cash-on-Cash Return Calculator","title":"Cash-on-Cash Return Calculator – Annual Pre-Tax Cash Flow over Cash Invested","category":"investing","category_name":"Investing & Real Estate","tool_name":"calculate_cash_on_cash_return","featured_mcp_tool":false,"description":"Computes a rental property's annual pre-tax cash flow after operating expenses and debt service, and divides it by the cash invested (down payment, closing costs, repairs) to get the cash-on-cash return.","use_when":"You financed a rental property and want the yield on the actual cash you put in, including the effect of the mortgage.","do_not_use_when":"You want an unlevered, financing-independent comparison (use cap-rate) or a total return including appreciation and principal paydown. Informational only; not financial advice.","inputs":[{"name":"cash_invested","label":"Total cash invested","type":"number","required":true,"max":1000000000000,"exclusive_min":0,"description":"Down payment plus closing costs, initial repairs and other upfront cash.","example":60000},{"name":"annual_rental_income","label":"Annual rental income","type":"number","required":true,"min":0,"max":1000000000000,"description":"Rent and other income actually collected per year.","example":24000},{"name":"annual_operating_expenses","label":"Annual operating expenses","type":"number","required":true,"min":0,"max":1000000000000,"description":"Taxes, insurance, maintenance, management, utilities and vacancy allowance per year.","example":8000},{"name":"annual_debt_service","label":"Annual debt service","type":"number","required":false,"default":0,"min":0,"max":1000000000000,"description":"Total mortgage payments (principal + interest) per year; 0 for an all-cash purchase.","example":12000}],"outputs":[{"name":"net_operating_income","label":"Net operating income","type":"number","decimals":2,"description":"annual_rental_income − annual_operating_expenses."},{"name":"annual_cash_flow","label":"Annual pre-tax cash flow","type":"number","decimals":2,"description":"net_operating_income − annual_debt_service."},{"name":"monthly_cash_flow","label":"Monthly cash flow","type":"number","decimals":2,"description":"annual_cash_flow / 12."},{"name":"cash_on_cash_return_percent","label":"Cash-on-cash return","type":"number","unit":"%","decimals":2,"description":"annual_cash_flow / cash_invested × 100."}],"input_schema":{"type":"object","properties":{"cash_invested":{"description":"Down payment plus closing costs, initial repairs and other upfront cash.","type":"number","maximum":1000000000000,"exclusiveMinimum":0,"examples":[60000]},"annual_rental_income":{"description":"Rent and other income actually collected per year.","type":"number","minimum":0,"maximum":1000000000000,"examples":[24000]},"annual_operating_expenses":{"description":"Taxes, insurance, maintenance, management, utilities and vacancy allowance per year.","type":"number","minimum":0,"maximum":1000000000000,"examples":[8000]},"annual_debt_service":{"description":"Total mortgage payments (principal + interest) per year; 0 for an all-cash purchase.","type":"number","minimum":0,"maximum":1000000000000,"default":0,"examples":[12000]}},"additionalProperties":false,"required":["cash_invested","annual_rental_income","annual_operating_expenses"]},"output_schema":{"type":"object","properties":{"net_operating_income":{"description":"annual_rental_income − annual_operating_expenses.","type":"number"},"annual_cash_flow":{"description":"net_operating_income − annual_debt_service.","type":"number"},"monthly_cash_flow":{"description":"annual_cash_flow / 12.","type":"number"},"cash_on_cash_return_percent":{"description":"annual_cash_flow / cash_invested × 100. Unit: %.","type":"number","x-unit":"%"}}},"formula":"annual_cash_flow = annual_rental_income − annual_operating_expenses − annual_debt_service; cash_on_cash_return_percent = annual_cash_flow / cash_invested × 100","method":"First-year, pre-tax cash yield; it ignores appreciation, loan principal reduction, depreciation tax benefits and the sale. Informational mathematics only; not financial advice.","sources":[{"name":"Wikipedia – Cash on cash return","url":"https://en.wikipedia.org/wiki/Cash_on_cash_return","type":"reference","retrieved_at":"2026-09-24"},{"name":"Wikipedia – Capitalization rate","url":"https://en.wikipedia.org/wiki/Capitalization_rate","type":"reference","retrieved_at":"2026-09-24"}],"freshness":{"type":"static","max_age_seconds":null,"note":"Deterministic formula with fixed constants; results never go stale. Inputs supplied by the caller determine the output."},"examples":[{"name":"60,000 invested, 24,000 rent, 8,000 expenses, 12,000 debt service","inputs":{"cash_invested":60000,"annual_rental_income":24000,"annual_operating_expenses":8000,"annual_debt_service":12000},"expected":{"net_operating_income":16000,"annual_cash_flow":4000,"monthly_cash_flow":333.33,"cash_on_cash_return_percent":6.67},"url":"https://tttkmbb.com/api/v1/calculate/cash-on-cash-return?cash_invested=60000&annual_rental_income=24000&annual_operating_expenses=8000&annual_debt_service=12000"},{"name":"All-cash 200,000 purchase, 18,000 rent, 5,000 expenses","inputs":{"cash_invested":200000,"annual_rental_income":18000,"annual_operating_expenses":5000},"expected":{"annual_cash_flow":13000,"monthly_cash_flow":1083.33,"cash_on_cash_return_percent":6.5},"url":"https://tttkmbb.com/api/v1/calculate/cash-on-cash-return?cash_invested=200000&annual_rental_income=18000&annual_operating_expenses=5000"}],"faq":[{"q":"How does this differ from the cap rate?","a":"The cap rate divides NOI by the full price and ignores the mortgage; cash-on-cash subtracts debt service and divides by only the cash you invested, so leverage can push it above or below the cap rate."},{"q":"Should the principal part of the mortgage count as an expense?","a":"For cash-on-cash yes, because it leaves your pocket in the year; it does build equity, which a total-return measure would add back."}],"tags":["cash on cash return","rental property cash flow","real estate return","leverage","debt service"],"related":[{"calculator_id":"cap-rate","reason":"Unlevered yield on the property price."},{"calculator_id":"mortgage-payment","reason":"Compute the annual debt service from the loan terms."},{"calculator_id":"roi","reason":"Total return including the sale proceeds."}],"links":{"html":"https://tttkmbb.com/investing/cash-on-cash-return","markdown":"https://tttkmbb.com/investing/cash-on-cash-return.md","json":"https://tttkmbb.com/investing/cash-on-cash-return.json","api":"https://tttkmbb.com/api/v1/calculate/cash-on-cash-return","schema":"https://tttkmbb.com/api/v1/calculators/cash-on-cash-return","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-24"},"timestamp":"2026-09-24T03:51:27Z","next_actions":[{"tool":"run_calculator","calculator_id":"cash-on-cash-return","reason":"Run Cash-on-Cash Return Calculator with the inputs above."}],"links":{"markdown":"https://tttkmbb.com/investing/cash-on-cash-return.md"}}